Commodity Trading Tips for Crude Palm Oil by Kedia Commodity

Crude palm Oil on MCX settled down by -0.2% at 538.5 tracking weakness in spot demand despite of hopes higher demand from overseas. Malaysia palm oil exports during Feb 1-28 fell by 14.2% compared to a month earlier on subdued demand from China, European Union, India & Subcontinent and Middle East, data showed. Malaysia's palm oil exports India during Feb 1-28 slumped by 18.11% to 181,860 tons as compared to 222,100 tons imported during Jan 1-31. Palm oil imports fell for the third consecutive month by 11.56 per cent to 608,762 tonnes in January, on account of good domestic oilseeds production and better availability of edible oils, industry body Solvent Extractors Association (SEA) said. India, the world's leading vegetable oil buyer, had imported 688,393 tonnes palm oil in January 2015. The country's total vegetable oil imports fell by 19 per cent to 1.24 million tonnes (mt) in January this year from 1.26 mt in the year-ago period. China's imports plunged 24 percent to 4.48 million metric tons in 2016, the lowest since 2005, as benchmark futures surged 25 percent after El Nino squeezed supplies in Indonesia and Malaysia. With production set to recover in the two biggest producers in the second half, prices should fall to levels that attracts Chinese buying. The El Nino between 2015 and early 2016 reduced global palm oil output by 6.8 million tons last year. Technically market is under long liquidation as market has witnessed drop in open interest by -1.68% to settled at 4611 while prices down -1.1 rupees, now CPO is getting support at 534.6 and below same could see a test of 530.8 level, And resistance is now likely to be seen at 544.6, a move above could see prices testing 550.8.

Trading Ideas:

CPO trading range for the day is 530.8-550.8.

Crude palm oil prices ended with losses tracking weakness in spot demand despite of hopes higher demand from overseas.

European Union Palm oil imports stood at 3.6 million tonnes, down 15 percent from 4.3 million a year earlier, the data showed.

Indonesia will set its export tax for crude palm oil (CPO) in February at $18 per tonne, up from $3 per tonne last month

Crude palm oil prices in spot market gained by 2.00 rupees and settled at 551.30 rupees.